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The Lazy Investor's Artificial Eye

Is it possible for a chart to convey 30 years of ideas as vividly as a book in seconds, but not years? Decades of financial charts are capable of this by being stimulus/response maps of a living organism through its price movement. Navigating through these sequences are similar to bioinfomatics, locating sequences that hint to causality.

Similar Charts (green) for Today (red)
Outcome of Similar Charts (green) for Today (red)

Difficulty arises when contrasting images of charts -- it requires mimicking the human eye to understand decades of charts in seconds. The merits of the implementation is staggering, causality can be instantly correlated, leading to a substantial historical perspective to compliment any analysis. It's an incredibly simple but powerful process.

Given a symbol, retrieve the most recent chart (e.g. month, year, etc.), discover similar historical charts through artificial vision, and extrapolate outcomes for correlating their causality strength.

The financial markets are the perfect genetic algorithm imitating life. Some may describe it as chaos, or a random walk, fortunately professionals consistently demonstrate there's order, whether it's via fractals, neural networks, or dow theory -- their wallets don't lie.

Gains Localized To Big Companies

Based on monthly projections, the S&P 500 will need to rise further for a healthy market to take hold from April 17th to March 17th, 2007.

The performance projections for the Dow has made considerable progress from last week; most probably due to the 108 point trend reversal gain today, which wan't consistent with historical chart patterns. The current projections for the Dow consist of a strong number of up-trends, unlike the S&P 500. The strength in the market projections seem localized to large corporations, with the S&P 500 projecting near neutral trends.

The Dow's projecting a 76.92% likelihood of an up-trend based on historical chart patterns with the S&P 500 trailing at 61.54%. The health of the Dow has literally changed for the better overnight, atleast for companies that are part of the average. Unfortunately, the S&P 500 projections aren't as hard charging as required by a strong trend projection, it will need to rise further for a healthy market this month.

As a reminder, the 2007 projections for Dow and S&P 500 consist of strong up-trends, as has been reported here, since last year.